Transforming payment choices by doubling fees on the Illinois Tollway

Gene Amromin, Carrie Jankowski and Richard D. Porter

Conference Series ; [Proceedings], 2005

Abstract: On January 1, 2005, Illinois doubled the highway toll for travelers paying with cash, but kept the price unchanged for those paying electronically. This paper combines a theoretical model of payment choice with empirical analysis based on this rare natural experiment of differential pricing depending on the method of payment: cash versus electronic payment. An actual response to a price change allows the authors to estimate the sensitivity of consumer payment demand to prices.

Keywords: Payment; systems (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (5)

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Journal Article: Transforming payment choices by doubling fees on the Illinois Tollway (2007)
Working Paper: Transforming payment choices by doubling fees on the Illinois tollway (2006)
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